Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 1940
                        Barcode 533994
                            CHAMBER ACTION
              Senate                               House
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       04/03/2006 04:19 PM         .                    
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11  The Committee on Regulated Industries (King) recommended the
12  following amendment:
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14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Paragraph (c) of subsection (3) of section
19  95.11, Florida Statutes, is amended to read:
20         95.11  Limitations other than for the recovery of real
21  property.--Actions other than for recovery of real property
22  shall be commenced as follows:
23         (3)  WITHIN FOUR YEARS.--
24         (c)  An action founded on the design, planning, or
25  construction of an improvement to real property, with the time
26  running from the date of actual possession by the owner, the
27  date of the issuance of a certificate of occupancy, the date
28  of abandonment of construction if not completed, or the date
29  of completion or termination of the contract between the
30  professional engineer, registered architect, or licensed
31  contractor and his or her employer, whichever date is latest;
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    9:33 AM   03/31/06                             s1940d-ri08-t01

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1940 Barcode 533994 1 except that, when the action involves a latent defect, the 2 time runs from the time the defect is discovered or should 3 have been discovered with the exercise of due diligence. In 4 any event, the action must be commenced within 10 15 years 5 after the date of actual possession by the owner, the date of 6 the issuance of a certificate of occupancy, the date of 7 abandonment of construction if not completed, or the date of 8 completion or termination of the contract between the 9 professional engineer, registered architect, or licensed 10 contractor and his or her employer, whichever date is latest. 11 Section 2. Subsection (9) is added to section 718.618, 12 Florida Statutes, to read: 13 718.618 Converter reserve accounts; warranties.-- 14 (9) This section applies only to the conversion of 15 existing improvements where construction of the improvement 16 was commenced prior to its designation by the developer as a 17 condominium. In such circumstances, s. 718.203 does not apply. 18 Section 3. The amendments to s. 95.11(3)(c), Florida 19 Statutes, made by this act shall apply to any action commenced 20 on or after July 1, 2006, regardless of when the cause of 21 action accrued, except that any action that would not have 22 been barred under s. 95.11(3)(c), Florida Statutes, prior to 23 the amendments made by this act may be commenced before July 24 1, 2007, and if it is not commenced by that date and is barred 25 by the amendments to s. 95.11(3)(c), Florida Statutes, made by 26 this act, it shall be barred. 27 Section 4. This act shall take effect July 1, 2006. 28 29 30 ================ T I T L E A M E N D M E N T =============== 31 And the title is amended as follows: 2 9:33 AM 03/31/06 s1940d-ri08-t01
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1940 Barcode 533994 1 Delete everything before the enacting clause 2 3 and insert: 4 A bill to be entitled 5 An act relating to construction contracting; 6 amending s. 95.11, F.S.; revising commencement 7 periods for actions founded on the design, 8 planning, or construction of improvements to 9 real property; amending s. 718.618, F.S., 10 relating to converter reserve accounts and 11 warranties; limiting applicability to certain 12 improvements; providing an effective date. 13 14 WHEREAS, architects, engineers, and contractors of an 15 improvement to real property may find themselves named as 16 defendants in a damage suit many years after the improvement 17 was completed and occupied, and 18 WHEREAS, to permit the bringing of such actions without 19 an appropriate limitation as to time places the defendant in 20 an unreasonable, if not impossible, position with respect to 21 asserting a defense, and 22 WHEREAS, architects, engineers, and contractors have no 23 control over an owner whose neglect in maintaining an 24 improvement may cause dangerous or unsafe conditions to 25 develop over a period of years, who uses an improvement for 26 purposes for which it was not designed, or who makes 27 alterations or changes that, years afterward, may be 28 determined to be unsafe or defective and that may appear to be 29 a part of the original improvement, and 30 WHEREAS, liability insurance for the engineer, 31 architect, or contractor is more difficult and more expensive 3 9:33 AM 03/31/06 s1940d-ri08-t01
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1940 Barcode 533994 1 to obtain the longer he or she is exposed to potential 2 liability after an improvement to real property has been 3 completed, and 4 WHEREAS, Florida currently limits the liability 5 exposure of architects, engineers, and contractors to a period 6 of 15 years after completion of an improvement to real 7 property, and 8 WHEREAS, liability insurance coverage is increasingly 9 difficult and more expensive to acquire to cover a period of 10 more than 10 years after an improvement to real property is 11 completed, especially for small and medium-sized architecture, 12 engineering, and construction firms, and 13 WHEREAS, liability insurance coverage for work on 14 residential construction projects, such as condominiums, is 15 generally not available to cover a period of more than 10 16 years after the improvement to real property is completed, and 17 WHEREAS, the increased cost of such insurance coverage 18 and liability exposure adds to the total cost of construction 19 and is ultimately borne by residential and commercial property 20 owners, and 21 WHEREAS, Florida's current 15-year limit on liability 22 is considerably longer than most other states, some of which 23 have adopted limits as low as 5 years and most of which have 24 adopted a 10-year limit, and 25 WHEREAS, the best interest of the people of the state 26 will be served by reducing the period of time an engineer, 27 architect, or contractor may be exposed to potential liability 28 after an improvement has been completed, and 29 WHEREAS, a recent increase in the conversion of 30 completed or partially completed buildings to condominiums has 31 caused confusion regarding the scope of the warranties 4 9:33 AM 03/31/06 s1940d-ri08-t01
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1940 Barcode 533994 1 specified in sections 718.203 and 718.618, Florida Statutes, 2 and necessitates the clarification of these statutes, NOW, 3 THEREFORE, 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5 9:33 AM 03/31/06 s1940d-ri08-t01